Money Tips Podcast

UK base interest rates have increased from 1% to 1.25%, the fifth consecutive rise, to reach the highest level in 13 years.

In America, the Fed went further raising rates by .75% to a target range of 1.5-1.75 percent and forecasts a 3.25-3.5 percent fed funds rate by year-end.

It comes as finances are being squeezed by the rising cost of living, driven by record fuel and energy prices.

Inflation - the rate at which prices rise - is currently at a 40-year high of 9%, and the Bank – which last year said inflation was “transitory” now warns it could surpass 11% by October. But everyone knows inflation is already well into double digits with heating and fuels bills doubling for many families.

Watch video version - https://youtu.be/hlTwicSwPIw

In a survey carried out by the BBC some people revealed that they are skipping meals to save money and cutting back on spending on luxuries and entertainment.

With no sign of oil and gas prices coming down soon, this all points to a recession.

Crypto collapse continues as BTC losses top 70% 

Many major cryptocurrencies have fallen by up to a quarter of their value over the past day

Bitcoin crashed below $21,000 on Wednesday, dropping a further 10 per cent overnight to reach its lowest level since the end of 2020 - at $20,630 as I write.

Ethereum has collapsed from just under $5,000 in November 2021 to just over $1000 and other cryptos have fallen off the cliff.

Some cryptocurrencies have since recovered slightly, though analysts warn that the volatility may not yet be over.

Bitcoin is trading at $20,630, and has dropped 25% in the past five days alone its lowest value in 18 months. Its peak of almost $70,000, in November, feels like another era.

There has never been a more pressing time to learn how to manage your money – you can watch my free training video by clicking here - https://bit.ly/3H2WcbA

How to survive

What will you do to survive and even thrive in this recession?

80% OF PEOPLE WHO WANT MORE NEVER DO ANYTHING TO EARN MORE

Here are my 10 inflation-busting tips:

1. Loyalty cards and money saving and rewards websites can save you thousands
2. Maximise your returns on savings and investments and invest spare cash into assets
3. Clear credit card debts as fast as you can or transfer to interest free offers
4. Abandon ‘brand loyalty’ for better deals on similar products and services
5. Shop wisely at discount store, look for price reductions and stay flexible
6. Cook from scratch and avoid expensive pre-prepared microwavable meals
7. Get control of your finances and stop spending more than you earn
8. Earn more than you spend by increasing your income
9. Get a part-time job – there are millions of job vacancies in the UK
10. Start a part-time side hustle or retrain for a higher paid career.

JOIN ME FOR UK PROPERTY TALK SAT 28 MAY 2022 10AM

75% of mortgages are fixed

40% of fixed rate mortgages are fixed for 5 years.

More houses in the UK are owned out right with no mortgages than those with mortgages.

Register - https://contexttraining.aweb.page/p/c1e369d0-56b1-45a3-8264-0c0a7e875d23

click here to register

#property #bitcoin #cryptocurrency #crypto #interestrates #inflation #mortgage #fixedratemortgage

Apple will launch a new ‘buy now pay later service’ (BNPL) scheme in the US to spread the cost of purchases over four to six weeks.

The BBC reported last December that over 15 million people in the UK are already using BNPL services run by the likes of Klarna, Clearpay, Laybuy and PayPal.

Challenge to traditional; banks.

Citizens Advice reported concerns that 12 million adults are using BNPL services to pay for essentials such as food a toiletries.

Deferring payment will be made even easier with millions of iPhone users tapping their way into easy debt.

The BNPL market is expected to be worth £30 billion by the end of the decade.

Apple’s move comes as the cost of living has reached new highs with the cost of unleaded petrol hitting £2 per litre! One haulage firm said the cost of fuelling a truck has risen by £20,000 a year, which will be passed on to customers.

The pound fell this week after Boris Johnson survived a vote of no confidence.

Although the Queen’s Jubilee celebrations gave a welcome boost to spending on hospitality, consumer spending was down in May as the cost of living continued to rise, according to the British Retail Consortium.

Food prices continue to soar as India bans wheat exports and shortages are starting in some countries.

There is nothing new about consumer debt, but the speed and ease of obtaining credit almost instantaneously has changed in the last few years.

Consumer debt is “dumb” according to Warren Buffett, one of the world’s richest and most successful investors.

There has never been a more pressing time to learn how to manage your money – you can watch my free training video by clicking here - https://bit.ly/3H2WcbA

Good debt, used for instance to purchase assets, such as property, or start businesses, is smart borrowing, as I explain in my book, Borrow and Grow Rich.

The rich and wealthy have been using smart borrowing or ‘other people’s money (OPM) for centuries to finance business ventures and build huge property portfolios.

You can learn the secrets of property investing using OPM and build your own portfolio.

With inflation running at near double figures the real purchasing power of your cash is being eaten away and will halve every 8 years if consumer prices continue to rise by 9%pa.

However, you can use inflation to your advantage using the right assets and good debt.

FREE TRAINING – PROPERTY INVESTING SECRETS

This Property Investing Secrets free training webinar is designed by the industry’s top investing trainers to bring you 120 minutes of valuable content; providing you with the tools to successfully invest in buy-to-let properties, raise finance and build a mighty portfolio from the ground up.

Live training Wednesday 8 June 2022 at 7pm UK time.

CLICK TO JOIN THE LIVE ONLINE EVENT 

https://bit.ly/3DlSlCL

In this episode:

Market slowdown has already started in UK and US.

Sales activity slowing as mortgage rates soar.

Property slowdown usually follows a stock market fall, which has happened.

Affordability at record high

Average UK salary - £31,772 (2021)

Average UK house price £278,000 (March 2022)

278,000/31772 = 8.75 x average salary to buy an average property in the UK

Inflation over 8% in US and Eurozone, which means higher interest rates.

Higher rates could crash the already weakened economy.

How will UK market react?

A 20% drop in prices will still only leave us to the market was in 2020.

Buying and selling at auction – UK Property Talk

JOIN ME FOR UK PROPERTY TALK SAT 4 June 2022 10AM

Buying and Selling at Auctions – click here to register

https://contexttraining.aweb.page/p/c1e369d0-56b1-45a3-8264-0c0a7e875d23

FREE TRAINING – PROPERTY INVESTING SECRETS

This Property Investing Secrets free training webinar is designed by the industry’s top investing trainers to bring you 120 minutes of valuable content; providing you with the tools to successfully invest in buy-to-let properties, raise finance and build a mighty portfolio from the ground up.

Live training Wednesday 8 June 2022 at 7pm UK time.

CLICK TO JOIN THE LIVE ONLINE EVENT 

https://bit.ly/3DlSlCL

Soaring oil and gas prices are crippling western economies and ordinary people are suffering. But there is a way western leaders can end the energy crisis in an instant…watch video. 

Check out full video - https://youtu.be/t-yniGn_SKA

ECB Warns Of Housing Market Bubble

The European Central Bank has warned this week that a housing market correction – caused by faltering economies, inflation and the Ukraine war – could put banks at risk of defaults and hit low-income families.

Windfall tax to help people with fuel bills announced

In the UK, Chancellor Rishi Sunak has announced a £5 billion package to ease the burden on soaring energy bills for millions of households. The aid will be funded by a controversial ‘windfall tax’ on energy companies which have profited from record oil and gas prices.

Every household will receive £400 through their energy bills and the poorest will also receive £650 to help with the rising cost of living.

US Fed is planning more restrictive measures to curb inflation including higher interest rates.

Letting Agents could be putting landlords at risk of prosecution

Most letting and managing agents do a good job for landlords who prefer to keep their buy-to-let properties at arm’s length.

However, not every estate agent keeps up with the raft of changes in legislation impacting property rentals in the UK, and a few are completely unaware of the current requirements.

There are currently 160 pieces of legislation directly and indirectly affecting tenants and buy-to-let landlords in the UK!

The Housing Act and Landlords and Tenants Act are the two main laws governing buy-to-let renting, but they overlap with many other regulations which can easily trip up landlords who reply on their letting agent to ensure they are acting within the law. 

In most cases the landlord is ultimately held responsible when things go wrong. This can lead to massive fines, penalties and even imprisonment.

In my experience, I found that you should never totally depend on an estate agent to keep you legal when dealing with tenants – because they often do not know all the rules and procedures, which will put me at risk of prosecution or failure to get possession in the event of a dispute or rent arrears.

For instance, failure to supply a tenant with required documents such as the How to Rent Guide and the Prescribed Information could result in a judge refusing to grant possession should the landlord need to resort to eviction. 

I have been shocked to find that many established agents did not even know what the Prescribed Information was!

This could be due to lack of training, but could also to down to laziness and just not bothering to carry out any CPD (Continuous Professional Development).

This is particularly prevalent in one-man-band ‘mom and pop’ agents where, unlike national and franchised companies, the owner operator is too busy to research all the changes or attend courses.

Franchisees must undergo strict training to start trading, as well as ongoing training and CPD. They are also supervised and have access to support and systems which keep them on the right track.

Estate Agents do not have a great reputation in Britain, ranking up there with politicians and lawyers! The poor service I have received over my 30 years as a property investor from estate agents has prompted me to launch my own estate agency business under the excellent Open House Estate Agents franchise banner.

The training and support for my team and I has been outstanding, and I will be officially launching in June. 

FREE TRAINING – PROPERTY INVESTING SECRETS

This Property Investing Secrets free training webinar is designed by the industry’s top investing trainers to bring you 120 minutes of valuable content; providing you with the tools to successfully invest in buy-to-let properties, raise finance and build a mighty portfolio from the ground up.

Live training Wednesday 1 June 2022 at 7pm UK time.

CLICK TO JOIN THE LIVE ONLINE EVENT 

https://bit.ly/3DlSlCL

JOIN ME FOR UK PROPERTY TALK SAT 28 MAY 2022 10AM

Number of rental properties growing in the UK – click here to register

New research shows the number of UK rental properties has grown by over 1.1m in the last decade, placing the UK in the top 10 globally when it comes to the balance between homeownership and renting.

Register - https://contexttraining.aweb.page/p/c1e369d0-56b1-45a3-8264-0c0a7e875d23

click here to register

Global share prices experienced sharp falls in UK, US and Asia as rising prices and slowing economies spook investors.  

On Wednesday, US shares recorded the biggest one-day drop in two years since the start of the pandemic. 

The NASDAQ plummeted 4.7% and has opened down again continuing a longer-term decline – down 18% YTD and the DOW JONES declined 14% since the start of 2022. 

It’s not only tec stocks being sold off. Blue chips, like Unilever and Tesco’s, have also dropped by 4.4% and 5% respectively. The biggest Faller on the UK market was Royal mail plummeted 12%. The UK FTSE 100 index fell 150 points today.  

Inflation

Inflation is eating away at your savings as well as costing you more to live. The buying power of your money in the bank is falling by around 10% every year, which means that £1000 will be worth just £900 next year. 

In other words, in 12 months’ time your £1000 will buy you the equivalent of £900 of the same goods. In the meantime, the price of those goods are going up by 10%.  

If inflation figures were calculated in the same way as they were previously headline rate would be double today’s official rate.

Main points:

• Retail prices index rising by 13% pa and includes the price of all goods excluding property costs – which have gone up massively.
• Manufacturers price rises rising by over 15% pa.
• Commodities, such as oil, wheat, fertiliser and animal feed have gone up by 50% to 100% in some cases.
• The war is not causing inflation, sanctions are. 
• UK economy fell in April by 0.1%.
• US economy declines for first time since 2020. 

What can you do to protect yourself and your family?

UK Property Talk Show 10AM Saturday.

Click link to join: - https://bit.ly/3sjxRa1

How can you not only protect your savings against inflation but also increase the value of your money!

Invest in real assets which appreciate in value over time, such as property and shares in profitable businesses.

Join me on UK Property Talk to discuss this and other property matters this Saturday at 10 am.

Click here to register for UK Property Talk - https://bit.ly/3sjxRa1 

London Mayor Calls For 2 Year ‘Rent Freeze’ In London and end to Section 21 ‘no fault evictions’

In an open letter, the London Mayor Sadiq Khan has called on the government to freeze rents in London ahead of the Queens Speech which could see introduction of legislation to end to Section 21 ‘no fault evictions’.

The 2019 Conservative Party manifesto committed to a “renters’ reform bill” that would abolish section 21 orders, which enable landlords evict their tenants with eight-weeks’ notice without explaining why.

According to the FT, the measures are expected to be included in the Queen’s Speech that sets out the government’s policy and legislative agenda for the next parliamentary session.

Campaigners and opposition parties want ‘open ended’ tenancies and an end to what is commonly known as no fault evictions. Currently, landlords who want to take back possession of their property, for instance when a tenancy has come to an end, merely have to serve a Section 21 notice to the tenant.

If Section 21 is abolished, it will be far more difficult for landlords to get their properties back and the onus will be on them to show grounds.  

Mayor Khan, a former Labour MP and Human Rights lawyer, wrote:

I am writing ahead of the Queen’s speech to urge you to take immediate action to ease the cost of living crisis for 2.4 million Londoners by devolving the powers to me to introduce rent control in London.

If we do not act urgently to protect renters, spiralling rents could soon translate into a devastating homelessness crisis.

I also welcome the government’s commitment to ending section 21, introducing open-ended tenancies and creating a public national landlord register. 

Sadiq Khan

Mayor of London

Electoral pacts

Source: The Independent

Although the London Mayor has no power to introduce rent controls, there are growing calls on the government to abolish ‘no fault evictions’ in the current parliament, which will be disastrous for the private rental market. 

The vast majority of 'buy-to-let' landlords are small investors with one or two properties, and many are accidental landlords. Landlords I have spoken to said they would pull out of the market if 'open tenancies' were forced upon them and would be too nervous to rent out a property to a tenant were they would not be sure about getting back possession at the end of the tenancy.

Join me on UK Property Talk to discuss this and other property matters this Saturday at 10 am.

Click here to register for UK Property Talk - https://bit.ly/3sjxRa1

You will be sent a link to join this exclusive live event.
Beginner's Property Secrets Virtual Event - 24th May 2022

Register - https://bit.ly/3MCILAV

Don't know anything about property investing? Start at the beginning with Beginners Property Secrets, Progressive Property's complementary full-day virtual training workshop.

Post Lockdown Property Investing Is Here!

Don’t wait another year to get into property, take action and make that commitment today, because if you're not fully committed to mastering property, it's going to hurt you.

While many investors, particularly first timers, are struggling to find below market value deals for flipping or renting out, a small group of private but hard working beginners in the Progressive Community have been making job replacing incomes all throughout lockdown and you can too.

The 'secret'? It's all about knowing what to look for, where, and when.

So let's sort out your property investing strategy, your goals and getting you the results you want once and for all.

Beginner's Property Secrets Virtual Event - 24th May 2022

Register - https://bit.ly/3MCILAV

What Are You Going To Learn?

In just one evening, we will be sharing with you the cashflow strategies that the real successful property investors are using right now, including...

• How to get started in property in 2022
• Many different strategies YOU can use depending on your circumstances, including the Buy, Refurbish, Rent, Refinance strategy
• How to do this with little money of your own or by using other people’s money
• All with a live Q&A at the end to get your personal questions answered
• And more!

Will we see you there? Register your place at the virtual Beginners Property Secrets workshop today.

Beginner's Property Secrets Virtual Event - 24th May 2022

Register - https://bit.ly/3MCILAV

In the episode:

Market update

• Market slowing say Nationwide
• Surveyors down valuing
• Slow service at Land Reg and Local Authorities
• When is the best time to buy?

How the rich use Inflation, debt, low Interest rates and rising asset prices to increase their wealth

• Inflation 9%
• Mortgage Rate, e.g. 4%
• Asset prices rising
• Debt being inflated away!
• Leverage

Beginner's Property Secrets Virtual Event - 24th May 2022

Register - https://bit.ly/3MCILAV

Don't know anything about property investing? Start at the beginning with Beginners Property Secrets, Progressive Property's complementary full-day virtual training workshop.

Post Lockdown Property Investing Is Here!

Don’t wait another year to get into property, take action and make that commitment today, because if you're not fully committed to mastering property, it's going to hurt you.

While many investors, particularly first timers, are struggling to find below market value deals for flipping or renting out, a small group of private but hard working beginners in the Progressive Community have been making job replacing incomes all throughout lockdown and you can too.

The 'secret'? It's all about knowing what to look for, where, and when.

So let's sort out your property investing strategy, your goals and getting you the results you want once and for all.

Beginner's Property Secrets Virtual Event - 24th May 2022

Register - https://bit.ly/3MCILAV

What Are You Going To Learn?

In just one evening, we will be sharing with you the cashflow strategies that the real successful property investors are using right now, including...

• How to get started in property in 2022
• Many different strategies YOU can use depending on your circumstances, including the Buy, Refurbish, Rent, Refinance strategy
• How to do this with little money of your own or by using other people’s money
• All with a live Q&A at the end to get your personal questions answered
• And more!

Will we see you there? Register your place at the virtual Beginners Property Secrets workshop today.

Beginner's Property Secrets Virtual Event - 24th May 2022

Register - https://bit.ly/3MCILAV

In this episode:

• Renters Reform Bill announced in Parliament.
• Planning reform
• Property prices
• Demand has jumped for properties where all the bills are included in the rent, according to Rightmove.
• The property website said inquiries for build-to-rent homes with bills included had risen by 36% over the past year.
• It comes as two students had to pay £27,000 up front to secure a Cardiff flat, due to rental market demand.
• The Welsh government plans to consult on rent control for private rentals.
• Rents are rising at the fastest rate for more than 13 years, according to property experts Zoopla. They said this is because of limited supply, caused by an "exodus" of private landlords.
• Last month, Wales had the biggest annual jump in rental prices outside of London - up 13.9% to £882 per month according to Rightmove.

UK Property Talk Show 10AM Saturday.

Click link to join: - https://bit.ly/3sjxRa1

UK Economy dips last month following US quarterly fall in output.

The vast majority of 'buy-to-let' landlords are small investors with one or two properties, and many are accidental landlords. Landlords I have spoken to said they would pull out of the market if 'open tenancies' were forced upon them and would be too nervous to rent out a property to a tenant were they would not be sure about getting back possession at the end of the tenancy.

Join me on UK Property Talk to discuss this and other property matters this Saturday at 10 am.

Click here to register for UK Property Talk - https://bit.ly/3sjxRa1

You will be sent a link to join this exclusive live event.

The Bank of England has warned that the UK economy will shrink this year as it raises interest rates to try to stem the pace of rising prices.

Base rates were hiked to 1% from 0.75% (50% higher), their highest level since 2009 and the fourth consecutive increase since December.

With fuel, energy and food costs soaring partly due to the Ukraine war, inflation is now at a 30-year high and will reach 10% by the end of the year, according to Bank of England Governor Andrew Bailey. 

Ordinary people are starting to rein in spending which is hitting growth.

Will higher interest rates curb inflation?

Higher interest rates make it more expensive for consumers and businesses to borrow, leading to lower spending and demand. People start spending less, demand for goods and services cool slowing the pace of price rises.

However, there are some economists who think that that increases in interest rates may have little effect in a situation of rising global oil and gas prices.

The Bank of England’s Monetary Policy Committee (MPC) said the UK economy is expected to contract in the final three months of this year. It is also expected to shrink by 0.25% in 2023, down from the Bank's previous forecast of 1.25% growth.

The MPC has also slashed its growth outlook for 2024 to 0.25%, down from 1%.

Bank of England governor Andrew Bailey said the UK was set for "a very sharp slowdown" but declined to call it a recession.

A majority of six members of the Bank's MPC voted to lift interest rates to 1% but the remaining three members wanted a steeper rise to 1.25%.

The Bank now expects inflation to hit 9% in the coming months - up from its previous forecast of 8% - and to reach 10.25% by the end of the year.

Fed raise rates by highest in 22 years

The US central bank has announced its biggest interest rate increase in more than two decades as it toughens its fight against fast rising prices.

The Federal Reserve said it was lifting its benchmark interest rate by half a percentage point, to a range of 0.75% to 1% after a smaller rise in March.

With US inflation at a 40-year high, further hikes are expected.

Last year, the Fed and BOE claimed that inflation was transitory and temporary.

Stock markets around the world ended the week in the red with the Nasdaq falling 5% on Thursday, the largest fall in two decades.

To help you get through this and come out stronger at the other end I am offering subscribers a free MONEY MASTERCLASS. 

Join me for an intimate Money Masterclass this Wednesday

The NEW WAY to build your wealth, IMMEDIATELY GET CONTROL of your money and learn how you can become FINANCIALLY FREE in 28 days using my S.M.A.R.T MONEY FORMULA!

With inflation at a 30-year high there has never been a better time to join me for this brand new Money Masterclass!

I am inviting a small group of people only to join me this WEDNESDAY 7PM for an intimate S.M.A.R.T Money Masterclass!

>>> REGISTER HERE - https://contexttraining.aweb.page/p/101d6194-4fe4-4036-8cc8-615ecc35f857

Secure your seat now!